OneMain (NYSE:OMF) vs. Mr. Cooper Group (NASDAQ:COOP) Head-To-Head Review

OneMain (NYSE:OMF) and Mr. Cooper Group (NASDAQ:COOP) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

85.8% of OneMain shares are owned by institutional investors. Comparatively, 89.8% of Mr. Cooper Group shares are owned by institutional investors. 0.4% of OneMain shares are owned by insiders. Comparatively, 1.7% of Mr. Cooper Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

OneMain has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500. Comparatively, Mr. Cooper Group has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for OneMain and Mr. Cooper Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OneMain	0	4	7	1	2.75
Mr. Cooper Group	0	5	3	0	2.38

OneMain presently has a consensus price target of $62.88, suggesting a potential upside of 3.93%. Mr. Cooper Group has a consensus price target of $149.67, suggesting a potential downside of 29.00%. Given OneMain’s stronger consensus rating and higher possible upside, equities research analysts clearly believe OneMain is more favorable than Mr. Cooper Group.

Dividends

OneMain pays an annual dividend of $4.20 per share and has a dividend yield of 6.9%. Mr. Cooper Group pays an annual dividend of $2.00 per share and has a dividend yield of 0.9%. OneMain pays out 71.2% of its earnings in the form of a dividend. Mr. Cooper Group pays out 22.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. OneMain has increased its dividend for 5 consecutive years. OneMain is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares OneMain and Mr. Cooper Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OneMain	12.63%	20.65%	2.57%
Mr. Cooper Group	25.38%	15.66%	4.22%

Earnings and Valuation

This table compares OneMain and Mr. Cooper Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OneMain	$4.87 billion	1.48	$509.00 million	$5.90	10.25
Mr. Cooper Group	$2.23 billion	6.06	$669.00 million	$8.74	24.12

Mr. Cooper Group has lower revenue, but higher earnings than OneMain. OneMain is trading at a lower price-to-earnings ratio than Mr. Cooper Group, indicating that it is currently the more affordable of the two stocks.

About OneMain

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses in the United States. It originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards; optional credit insurance products, including life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It sells its products through its website. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.

About Mr. Cooper Group

Mr. Cooper Group Inc., together with its subsidiaries, operates as a non-bank servicer of residential mortgage loans in the United States. The company operates through Servicing and Originations segments. The Servicing segment performs activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, customer service, modifying loans, performing collections, foreclosures, and the sale of real estate owned. The Originations segment originates residential mortgage loans through its direct-to-consumer and correspondent channels. The company provides its services under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. was incorporated in 2015 and is based in Coppell, Texas.